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Informist, Friday, Jul. 3, 2026

 

--India June services PMI 57.4 vs 59.8 in May

--India June composite PMI 57.1 vs 59.3 in May

--India June services PMI of 57.4 lowest in 17 months

 

NEW DELHI – Growth in India's services sector activity in June eased to a 17-month low amid the challenging market conditions and weaker domestic demand, S&P Global said Friday. The data also showed a loss of growth momentum on reduced client interest for some services, which reportedly stymied growth in total sales and output, S&P Global, which compiles the Purchasing Managers' Indices, said.

 

The HSBC India Services Purchasing Managers' Index moderated to 57.4 in June from 59.8 in May. At 57.4, the final Services Purchasing Managers' Index for June was a tad above the flash estimate of 57.3 that was released Jun. 23. A Purchasing Managers' Index reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

 

The services sector saw the slowest expansion in new order intakes in over two-and-a-half years, S&P Global said in a release.

 

Survey participants indicated that challenging market conditions and reduced client interest for their services dampened sales at their units. While others experienced growth remarked on competitive pricing decisions, greater demand for e-commerce, higher customer bookings and better local tourism, S&P Global said.

 

One area of strength seen in June was exports, with firms seeing the strongest rise for three months, S&P Global said. Services companies saw improved demand from Australia, Belgium, Canada, Germany, Malaysia, Nepal, Oman, Qatar, Singapore, the United Arab Emirates, and the US.

 

With higher input costs at the end of June, panellists signalled greater electricity, food, fuel, and transportation prices, S&P Global said. The rate of inflation eased to a five-month low. "Price pressures also continued to cool, with both input cost and output charge inflation moderating as geopolitical disruptions in the Middle East began to subside," Pranjul Bhandari, chief India economist at HSBC, said in the release.

 

Meanwhile, services firms foresee output growth in the coming 12 months. However, the overall positive sentiment fell to a five-month low in June, according to the survey.

 

Slight moderation in service sector activity dented the hiring activity last month as it remained broadly stagnant. "Service providers generally found that payroll numbers were sufficient for current requirements and hiring was broadly paused," the release said.

 

The Composite Purchasing Managers' Index eased to 57.1 in June from 59.3 in May, the slowest pace of growth since March, S&P Global said. The latest print was marginally below the flash estimate of 57.4. "In parallel to the slowdown in economic growth, private sector companies in India restricted the extent to which selling prices were raised in tandem with receding cost pressures," S&P Global said.  End

 

Reported by Shweta

Edited by Deepshikha Bhardwaj

 

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